Central Valley Fund II provides $6.5M in debt and equity financing
Source’s network expanded 7 warehouse locations provides a national presence
The newly combined companies announced an 8th location in Chicago, scheduled to open Spring 2013
Los Angeles, CA and Portland, OR, December 20, 2012 – Source Logistics (“SL”), a California based leading 3PL logistics provider, and Fulfillment Corporation of America (“FCA”), a Oregon based fulfillment and digital deployment provider catering to some of the largest U.S. consumer product, financial service and healthcare companies, today announced that both companies have agreed to a transaction and a business combination.
The potential impact of spending cuts that will take effect if Congress and the President currently can’t agree on a plan to avoid is referred to as the balance of the so-called “fiscal cliff” remains a major obstacle to fortifying business confidence in 2013. The American Taxpayer Relief Act of 2012 (“ATRA”) was enacted January 1, 2013 avoiding substantial increases in marginal tax rates for the majority of U.S. taxpayers, however, postponed undertaking any budget cuts related to sequestration.
If legislation had not been passed the Congressional Budget Office (CBO) estimates that there would have been a $600B hit to the U.S. economy if political leaders do not act to curtail large tax increases and government program cuts, representing 3-4% of U.S. GDP. There is still the pending matter of substantial automatic federal program cuts across the board in sixty-days, at the end of February 2013, as part of negotiating the federal debt ceiling.
CVVF brings together venture capitalists, investment bankers, angel investors, leading startups, valuation executives, corporate executives, and community leaders to discuss economic and financial opportunities relating to the Central Valley. Learn more!
Recently, the California Financial Opportunities Roundtable (CalFOR) released a handbook addressing the difficulties small businesses face in raising capital. Access to Capital recognizes these concerns and focuses on potential avenues to success for California entrepreneurs.
The Central Valley Fund ("CVF"), a private investment fund focused on middle market companies, today announced its recent exit of an $8.5M mezzanine investment in Anabi Oil Corporation and its affiliates ("AOC" or the "Company"). CVF led the transaction with its co-investor, San Diego-based Huntington Capital, and partnered to support the Company's acquisition of certain Shell-branded retail gasoline properties and related wholesale distribution rights in Northern and Southern California.
The transaction helped AOC expand throughout California and become the market leader in the Inland Empire. Founded in 1991 with a single station, AOC has distinguished themselves as a leading station operator across any number of metrics within the Shell system for years. The acquisition of these assets coupled with AOC’s existing platform, characterized by strong operations, has allowed the company to maximize customer traffic at the retail pump and in the convenience store. Despite the statewide decline in gasoline sales and a moribund California economy, AOC has powered through these market challenges and delivered strong operating results.
CVF Capital Partners (“CVF”), the manager of the Central Valley Fund, today announced the closing of its mezzanine fund, Central Valley Fund II (“the Fund”). The Fund has over $100 million of total committed capital which they will deploy as mezzanine debt and equity capital to the lower-middle market. CVF will invest the Fund across a broad range of sectors and geographies, with a particular focus on California and the Central Valley.
The Fund’s size and scale allows it to focus on the underserved lower middle market, while its flexible structure enables CVF to be creative in solving a company’s particular capital needs. With its proven expertise in deal origination, credit selection and structuring, CVF is consistently selected as a partner of choice by companies, banks, and private equity firms seeking mezzanine capital for acquisitions and other important strategic initiatives.
Michael Stead, capital markets director for Bank of the West, and Jeffrey Michael, director of the Business Forecasting Center at University of the Pacific, will be keynote speakers for the Business Forecast Conference to be held Jan. 19 in Stockton.
The conference, sponsored by the San Joaquin County Hispanic Chamber of Commerce, will examine the tea leaves for the coming year's economy from global, national, state and local perspectives.
It will also feature a panel of local leaders, including Fritz Grupe, chairman and founder of The Grupe Cos.; Jose Blanco, principal of the Central Valley Fund; Bruce Blodgett, executive director of the San Joaquin Farm Bureau; and Corwin Harper, senior vice president and area manager for Kaiser Permanente.
The California economy continues to generate mixed results as certain sectors begin to show signs of solid recovery (technology, agriculture, tourism and health care) relative to other sectors which continue to struggle (residential construction, retail and business services). The state continues to recover from the real estate overhang with persistently high foreclosure rates and a consumer looking to continue to de-lever.
The seventh edition delivered diverse topics of interest to entrepreneurs, business owners, the banking community, angel investors, venture capitalists and private equity funds from the Central Valley region and throughout California.
Among the main topics, the event offered a Hispanic Business Success Panel, which recognized successful Central Valley Hispanic entrepreneurs and business owners discussing diverse subjects relating to how they have achieved their success. In addition, the panel shared their view on future opportunities related to current Hispanic demographics in the U.S. and exporting their products to Mexico and Asia.
Montebello, CA - Source Logistics, LLC ("Source") announced today that it has been named one of Inc. 500/5000 fastest-growing private companies list and now ranks among the top 100 Logistics & Transportation companies in the country. The 2011 list measured revenue growth from 2007 through 2010. To qualify, companies must have been in operation during this period of time, based in the U.S., privately held, for profit, and employee based.
Source saw its revenue grow 82% during this period of time and is expected to approach $20 million in revenue by the end of 2011. The company manages over 600,000 sq. ft. in warehouse space across four locations – Los Angeles, Laredo, Houston and New Jersey – providing a nationwide foot print for its customers, who continue to grow rapidly, demanding expanded services. The company provides valuable logistics solutions to leading Mexican and Latin American consumer product manufacturers exporting to U.S. retailers, who have surpassed most forecasts regarding trade volumes in the last few years.